Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Under North Dakota law, an employer or its insurer may assert a lien on any third-party recovery to recoup workers’ compensation benefits paid. See NDCC § 65-05-28. To resolve the lien, follow these steps:
- Identify and calculate the lien amount. Request from the insurer or Workforce Safety & Insurance (WSI) a detailed statement of compensation benefits, medical costs, and associated fees paid. This figure establishes the carrier’s reimbursement right.
- Notify all parties. Provide written notice of the pending personal injury settlement to the insurer and WSI. North Dakota requires carrier and department notification to protect subrogation rights.
- Negotiate a settlement allocation. Work with the carrier to agree on how the settlement divides among past and future medical bills, wage loss, and pain and suffering. A clear allocation prevents future disputes.
- Secure department approval. If you reach a third-party settlement, submit it for approval to WSI. NDCC § 65-05-28(3) mandates department review to ensure fair compensation for the carrier’s lien.
- Draft a stipulation or order. Prepare a written stipulation or court order reflecting the agreed lien amount and distribution plan. Include language releasing the carrier’s lien upon payment.
- Deposit funds with the court or WSI. Deposit the lien portion according to the stipulation. The court or department then disburses funds to the carrier and claimant as specified.
- Obtain a lien release. After payment, request a formal lien release from the carrier or WSI. Retain a copy for your records to confirm full satisfaction of the carrier’s interest.
Helpful Hints
- Start lien resolution early in settlement negotiations to avoid delays.
- Keep detailed records of all communications with the carrier and WSI.
- Confirm total expenses, including future medical projections.
- In complex cases, consider apportioning funds for future treatment.
- Ensure attorneys’ fees are carved out separately to prevent reducing the lien share.
- File copies of all stipulations and orders with the court and WSI to maintain transparency.